Indonesia’s Energy Policy Briefing

The document analyzes Indonesia's energy landscape, highlighting a projected increase in LPG subsidies to IDR 66.3 trillion in 2022 and a decline in diesel subsidies. It examines the National Electricity Supply Business Plan (RUPTL) 2021–2030, noting that while it targets a 24.8% renewable energy share by 2030, coal remains dominant. The briefing also discusses the challenges of coal phase-out, the introduction of a carbon tax, and the gap between Indonesia's COP 26 commitments and its actual NDC targets.

• Energy subsidies in Indonesia are projected to increase in 2022, with the LPG subsidy specifically expected to rise from an estimated IDR 49.9 trillion in 2021 to IDR 66.3 trillion in 2022, driven by consumption increasing from 7.5 million tonnes to 8 million tonnes.
• The National Electricity Supply Business Plan (RUPTL) 2021–2030 includes a low-carbon scenario aiming for a 24.8% share of new and renewable energy (NRE) in the energy mix by 2030. However, the plan still includes 19.5 GW of additional fossil fuel-based power plants, with 13.8 GW from coal, meaning coal's total share would remain at 59.4% by 2030 under this scenario.
• Indonesia's coal industry faced domestic shortages in 2021 due to a surge in exports to China and India, leading the government to tighten domestic market obligation (DMO) regulations and briefly implement an export ban from January 1 to January 12, 2022.
• Despite signing the Global Coal to Clean Power Transition declaration at COP 26, Indonesia omitted the commitment to end the issuance of new permits and construction of unabated coal-fired power plants. Furthermore, its updated NDC target remains at 23% NRE by 2025, which the document describes as not including a more ambitious target than the previous submission.
• Indonesia is introducing a carbon tax starting in April 2022 at a minimum rate of IDR 30 per kg of CO2e, initially targeting coal-fired power plants, with a full carbon market expected to operate by 2025.
• Investment in the renewable energy sector in 2021 reached USD 1.51 billion, which was only 74% of the USD 2.04 billion target. The actual realization of the renewable energy target in the energy mix was 11.5% in 2021, failing to meet the 14.5% target set in the National Energy General Plan.

APA

Suharsono, A., & Lontoh, L. (2022). Indonesia’s Energy Policy Briefing. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-03/indonesia-energy-policy-briefing-february-2022-en.pdf

Chicago

Suharsono, Anissa, and Lucky Lontoh. Indonesia’s Energy Policy Briefing. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-03/indonesia-energy-policy-briefing-february-2022-en.pdf.

Wikipedia

{{cite report |last1=Suharsono |first1=Anissa |last2=Lontoh |first2=Lucky |title=Indonesia’s Energy Policy Briefing |publisher=International Institute for Sustainable Development |date=February 2022 |url=https://www.iisd.org/system/files/2022-03/indonesia-energy-policy-briefing-february-2022-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{suharsono2022indonesias, author = {Suharsono, Anissa and Lontoh, Lucky}, title = {{Indonesia’s Energy Policy Briefing}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = feb, url = {https://www.iisd.org/system/files/2022-03/indonesia-energy-policy-briefing-february-2022-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }